Century Mining Corporation

Century Mining Corporation

October 01, 2007 15:42 ET

Century Mining Terminates Huancacancha Purchase

BLAINE, WASHINGTON--(Marketwire - Oct. 1, 2007) - Century Mining Corporation (TSX VENTURE:CMM) today announced that it has terminated its agreement to purchase the Huancacancha exploration property in Peru. The Company cited less-than-expected silver values in drill results as the basis for today's decision.

As announced on August 7, 2007 Century had agreed to a purchase price for the project of US$24,500,000 to be financed by the sellers. An initial installment by Century of $215,000 was paid at the closing, and the remaining $24,285,000 was to be paid over the next 4 years.

Since acquiring the Huancacancha property, Century conducted approximately 800 meters of diamond drilling in four holes to confirm silver and gold grades in the deposit. The deposit is located on a belt that has hosted other deposits where the silver content has covered a substantial portion of operating costs. The results of Century's drilling, however, showed low silver values that would not support further investment in the property.

Effective today therefore, Century has terminated the purchase agreement for Huancacancha and returned the concessions to the vendor without penalty to the Company and without any subsequent payment obligations to the vendor.

Margaret Kent, President & CEO, commented, "We saw excellent potential for a significant operation at Huancacancha as evidenced by Barrick's nearby Pierina deposit. However, the drill results were not what we considered sufficient to support a long-term project. Century will continue to focus management resources on our Lamaque underground program and on the expansion at San Juan."

About Century Mining Corporation

Century Mining Corporation is an emerging mid-tier gold producer that is aggressively acquiring producing mines and exploration properties in Peru. The Company owns and produces gold at the Sigma and Lamaque mines in Quebec that historically have produced over 9.4 million ounces of gold. In Peru, Century wholly-owned subsidiaries own an 82.6% interest in the San Juan Mine where the Company accounts for 100% of gold production. Century subsidiaries have also recently acquired Rosario de Belen where it accounts for 100% of both gold and silver production. Century's growth strategy is to acquire gold producing assets in South America that will substantially reduce the Company's consolidated total cash cost of production and where there is exceptional exploration potential to expand production at these mines.

Margaret M. Kent, Chairman, President & CEO

Caution Concerning Forward-Looking Information

This press release contains forward-looking information within the meaning of applicable securities laws. We use words such as "may", "will", "should", "anticipate", "plan", "expect", "believe", "estimate" and similar terminology to identify forward-looking information. It is based on assumptions, estimates, opinions and analysis made by management in light of its experience, current conditions and its expectations of future developments as well as other factors which it believes to be reasonable and relevant. Forward-looking information involves known and unknown risks, uncertainties and other factors that may cause our actual results to differ materially from those expressed or implied in the forward-looking statements and accordingly, readers should not place undue reliance on those statements. Risks and uncertainties that may cause actual results to vary include but are not limited to the speculative nature of mineral exploration and development, including the uncertainty of reserve and resource estimates; operational and technical difficulties; the availability to the Company of suitable financing alternatives; fluctuations in gold and other resource prices; changes to and compliance with applicable laws and regulations, including environmental laws and obtaining requisite permits; political, economic and other risks arising from our South American activities; fluctuations in foreign exchange rates; as well as other risks and uncertainties which are more fully described in our annual and quarterly Management's Discussion and Analysis and in other filings made by us with Canadian securities regulatory authorities and available at www.sedar.com.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the contents of this press release.

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